Revenue Decline Driven by Modest Volume Softness
Net sales declined 0.8% YoY to $1.673B in Q2 FY2026 from $1.686B in the prior-year period, suggesting modest volume or pricing headwinds across CLX's product portfolio.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
CLX reported Q2 FY2026 revenue of $1.67B, down 0.8% YoY, with net income falling 18.7% to $157M amid rising liabilities and a deepening negative stockholders' equity position.
Revenue
$1.67B
-0.77% YoY
EPS (Diluted)
$1.29
-16.23% YoY
Gross Margin
43.2%
-0.6 pts YoY
Source: SEC XBRL
Clorox (CLX) reported Q2 FY2026 revenue of $1.67B, down 0.8% year over year. CLX's fiscal Q2 FY2026 corresponds to calendar Q4 2025.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.66 | 1.67 | Miss -0.5% |
| Mar 2026 | 1.64 | 1.57 | Beat +4.7% |
| Dec 2025This filing | 1.39 | 1.45 | Miss -4.0% |
| Sep 2025 | 0.85 | 0.79 | Beat +7.0% |
Adjusted (non-GAAP) EPS of $1.39 versus the $1.45 analyst consensus — a -4.0% miss for Dec 2025. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.29.
Compiled by AI from this SEC filing
Net sales declined 0.8% YoY to $1.673B in Q2 FY2026 from $1.686B in the prior-year period, suggesting modest volume or pricing headwinds across CLX's product portfolio.
Source: 10-Q Income Statement
Gross margin contracted approximately 62 basis points YoY to 43.16% from 43.77%, as cost of revenue rose 0.3% despite lower sales, reflecting input cost pressures that offset SG&A savings.
Source: 10-Q Income Statement & Key Ratios
SG&A expenses declined 6.4% YoY to $262M and R&D fell 6.5% to $29M, demonstrating active cost management efforts that partially cushioned the impact of gross margin pressure on operating results.
Source: 10-Q Income Statement
Fiscal year-to-date operating cash flow reached $404M, up 0.7% from $401M in the same prior-year period, indicating the business continues to generate solid cash despite earnings pressure.
Source: 10-Q Cash Flow Statement (YTD)
Current liabilities surged 35.7% YoY to $2.347B from $1.730B, driving the current ratio down to 0.74 and deepening the negative stockholders' equity to -$125M, signaling elevated near-term financial obligations.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
CLX's stockholders' equity deteriorated to -$125M from -$41M a year ago, a decline of over 200% YoY, while total liabilities reached $5.578B. The debt-to-equity ratio is deeply negative at -44.6x, reflecting a highly leveraged balance sheet that limits financial flexibility.
Source: 10-Q Balance Sheet
Current liabilities jumped 35.7% YoY to $2.347B while current assets grew only 5.9% to $1.728B, resulting in a current ratio of 0.74 — well below 1.0. This means CLX's short-term obligations significantly exceed its liquid assets, creating potential refinancing or liquidity pressure.
Source: 10-Q Balance Sheet & Key Ratios
Net income fell 18.7% YoY to $157M while revenue declined only 0.8%, indicating that cost pressures and/or below-the-line items (interest expense on $2.486B long-term debt) are disproportionately eroding profitability. EPS dropped 16.8% to $1.29 on a basic basis.
Source: 10-Q Income Statement
Cash and equivalents declined 21.7% YoY to $227M from $290M, even as operating cash flow remained stable. This reduction, combined with elevated current liabilities, narrows the company's liquidity buffer for unexpected operational or market disruptions.
Source: 10-Q Balance Sheet & Cash Flow Statement
Cost of revenue increased 0.3% YoY despite a 0.8% revenue decline, compressing gross margin to 43.16% from 43.77%. If commodity or supply chain costs remain elevated, further margin erosion could pressure CLX's ability to sustain profitability.
Source: 10-Q Income Statement & Key Ratios
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.67 $B | 1.69 $B | -0.77% |
Cost of Revenue $M | 951.00 $M | 948.00 $M | +0.32% |
Gross Profit $M | 722.00 $M | 738.00 $M | -2.17% |
Net Income $M | 157.00 $M | 193.00 $M | -18.65% |
EPS (Basic) $ | 1.29 $ | 1.55 $ | -16.77% |
EPS (Diluted) $ | 1.29 $ | 1.54 $ | -16.23% |
R&D Expense $M | 29.00 $M | 31.00 $M | -6.45% |
SG&A Expense $M | 262.00 $M | 280.00 $M | -6.43% |
Answers draw on this SEC filing and the data on this page
CLX delivered essentially flat Q3 FY2026 results with revenue up just 0.1% to $1.67B and net income up 0.5% to $187M, while gross margin compressed 137 bps to 43.2% due to higher cost of revenue, and a large debt issuance dramatically reshaped the balance sheet, pushing stockholders' equity into negative territory.
Clorox’s fiscal 2026 revenue fell about 5% amid steep declines in Household and Lifestyle products, partially offset by International growth.
Other companies in Household Products